Restaurant and Catering Australia (R&CA) has warned that this week's 2026 Annual Wage Review decision will land far more heavily on hospitality businesses than the headline figure suggests, and has renewed its call for a simpler, more workable wage system.

The Fair Work Commission's expert panel increased minimum award wages by 4.75 per cent, effective from the first full pay period commencing on or after 1 July 2026.

In dollar terms this lifts the minimum award wage by about $45.57 per week.

For hospitality the real cost is considerably larger.

Because penalty rates apply across evenings, weekends and public holidays, every increase to the base rate is multiplied through the hours the sector relies on most.

The minimum impact for a hospitality business is close to $56.96 per week, and for many venues it is higher again.

R&CA made this case throughout the review, initially submitting that any increase should be no more than 3.5 per cent, then proposing at the hearing that it apply as a dollar figure rather than a blanket percentage, so the rise was not compounded again through penalty rates.

The increase will cost hospitality businesses far more than the figure on the page, because penalty rates compound the base rate across the very hours our venues trade.

Our members support fair pay for their teams.

What they cannot sustain is a system that layers cost upon cost through a penalty rates structure built for a different era.

The answer is reform to a simpler, more workable framework that recognises how modern hospitality actually trades.

There is also a tired claim that operators will simply raise menu prices to cover this.

That is a fallacy.

John Hart, R&CA national president

Increase welcome but government action needed

Australian Council of Social Service (ACOSS) has supported the Fair Work Commission’s decision to increase award wages by 4.75 per cent and the national minimum wage by six per cent for around 100,000 workers on the lowest rate, and is calling for further action to support people doing it tough, as well as the frontline community services helping them.

People are under severe pressure from interest rate rises, rent increases, higher fuel costs, and growing economic uncertainty due to the conflict in the Middle East.

The Fair Work Commission’s decision will help ease the pressure on low-paid workers to cover their basic living costs such as rent, food, and transport.

However, far more government action is needed to reverse the decade-long stagnation of living standards endured as wages and incomes have failed to keep pace with costs.

Lifting incomes for people in low paid work and those who are unemployed is all the more important when unemployment is rising.

Minimum wage increases have little or no impact on employment and inflation as they only go directly to workers paid under awards.

The government must also raise the rate of JobSeeker and related payments to levels that allow people to cover the basics and live decently.

ACOSS is also calling on the federal government to provide financial assistance to community sector organisations to fully cover the increasing costs of service delivery, including wages, without being forced to sacrifice staffing capacity or service quality.

The community sector provides essential services to people across the country in financial distress, disadvantage and hardship.

We’ve seen sharp increases in community demand and our members have already had to grapple with increased fuel costs and other supply chain disruptions in recent months.

The government must provide immediate and ongoing financial relief to these vital frontline services.

Edwina MacDonald, ACOSS acting CEO

Healthy Cities Landcare grants program returns

Bupa and Landcare Australia are pleased to announce the return of the Healthy Cities Landcare Grants Program for 2026 offering funding to support community groups and organisations across Australia to deliver native planting projects in urban and peri-urban areas.

Grants ranging from $5000 to $25,000 (ex-GST) are available to a broad range of eligible applicants, including Landcare groups, local governments, natural resource management organisations, not-for-profit organisations and Traditional Owners and First Nations organisation.

Applications are open now and will close on Monday, 13 July.

For more information visit https://landcareaustralia.org.au/grant/2026-healthy-cities-landcare-grants/.

Dr Shane Norrish, Landcare Australia CEO